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HomeMy WebLinkAboutPFA Reso No 2014-001 Issuance bonds (Canyon Hills Improvement Areas A and C RefundingRESOLUTION NO. PFA- 2014 -001 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE LAKE ELSINORE PUBLIC FINANCING AUTHORITY APPROVING THE ISSUANCE OF THE LAKE ELSINORE PUBLIC FINANCING AUTHORITY LOCAL AGENCY REVENUE BONDS (CANYON HILLS IMPROVEMENT AREAS A AND C REFUNDING), 2014 SERIES B, IN THE AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $20,000,000, AUTHORIZING THE SALE OF SUCH BONDS UPON CERTAIN TERMS AND CONDITIONS, APPROVING AN OFFICIAL STATEMENT, APPROVING THE EXECUTION AND DELIVERY OF AN INDENTURE OF TRUST, A BOND PURCHASE AGREEMENT AND ESCROW AGREEMENTS, AND AUTHORIZING THE TAKING OTHER ACTIONS RELATED THERETO WHEREAS, the Lake Elsinore Public Financing Authority (the "Authority ") is a joint exercise of powers authority duly organized and existing under and pursuant to that certain Joint Exercise Powers Agreement by and between the City of Lake Elsinore (the "City) and the Redevelopment Agency of the City of Lake Elsinore (the "Agency "), under the provisions of Articles 1 through 4 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California (the "Act'), and is authorized pursuant to Article 4 of the Act to borrow money for the purpose of financing the acquisition of bonds, notes and other obligations to provide financing and refinancing for capital improvements of member entities of the Authority; and WHEREAS, the City of Lake Elsinore Community Facilities District No. 2003 -2 (Canyon Hills) (the "District') previously issued its Special Tax Bonds (Improvement Area A), 2004 Series A (the "Prior IA A Bonds ") and the Authority previously issued its Local Agency Revenue Bonds (Canyon Hills IA C), 2010 Series A (the "Prior IA C Bonds," and together with the Prior IA A Bonds, the "Prior Bonds "); and WHEREAS, an opportunity exists to refund the Prior Bonds for the purpose of achieving debt service savings, which savings will benefit the homeowners within the respective improvement areas of the District by lowering the special taxes levied on their properties; and WHEREAS, for the purpose of refunding the Prior Bonds, the Authority has determined to issue its Local Agency Revenue Bonds (Canyon Hills Improvement Areas A and C Refunding), 2014 Series B ( the "Bonds "); NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE LAKE ELSINORE PUBLIC FINANCING AUTHORITY DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The foregoing recitals are true and correct and the Authority hereby so finds and determines. SECTION 2. The Authority hereby approves the issuance of the Bonds in the aggregate principal amount not to exceed $20,000,000 pursuant to the Indenture of 46408897.2 - 1 Public Financing Authority Resolution No. PFA- 2014 -001 Trust (the "Indenture "), which Indenture the Authority hereby approves in substantially the form on file with the Secretary of the Authority and presented to the Board at this meeting. Any one of the Chairperson, the Executive Director and the Secretary of the Authority, and each of them, and any designee of any of them (collectively, the "Authorized Officers "), is hereby authorized and directed, for and in the name and on behalf of the Authority, to execute and deliver the Indenture, with such insertions and changes as may be approved by the Authorized Officer executing the same, subject to the provisions of this Resolution, such approval to be conclusively evidenced by such execution and delivery. SECTION 3. The Authority hereby authorizes the sale of the Bonds to the Underwriter and the purchase of related local obligations of the District from the District pursuant to and in accordance with the Bond Purchase Agreement (the "Purchase Agreement "), which Purchase Agreement the Authority hereby approves in substantially the form on file with the Secretary of the Authority and presented to the Board at this meeting. Any one of the Authorized Officers is hereby authorized and directed, for and in the name and on behalf of the Authority, to execute and deliver the Purchase Agreement, with such insertions and changes as may be approved by the Authorized Officer executing the same, subject to the provisions of this Resolution, such approval to be conclusively evidenced by such execution and delivery. The underwriter's discount for the Bonds specified in the Purchase Agreement shall not exceed 1.5 %, exclusive of original issue discount. The true interest cost applicable to the Bonds shall not exceed 5.25 %. The maturity date of the Bonds shall not extend beyond the final maturity of the Prior Bonds. SECTION 4. The Authority hereby approves the Preliminary Official Statement (the "Preliminary Official Statement ") in substantially the form on file with the Authority Secretary, with such changes and modifications as shall be necessary or appropriate for completion to the satisfaction of the Executive Director of the Authority, and approval by Authority's Counsel. The Chairperson or the Executive Director is authorized and directed, on behalf of the Authority to deem the Preliminary Official Statement "final" pursuant to Rule 15c2 -12 under the Securities and Exchange Act of 1934. The Authority further approves distribution of the Preliminary Official Statement by the Underwriter to persons who may be interested in purchasing the Bonds. The Board hereby approves the final Official Statement (the "Official Statement ") describing the Bonds. Distribution of the final Official Statement by the Underwriter is hereby approved. The Chairperson or the Executive Director, subject to approval by the Authority's Counsel, is hereby authorized and directed to approve any changes in or additions to the final form of the Official Statement to conform to the requirements of the Purchase Agreement and the Indenture, as applicable. SECTION 5. The Authority hereby approves the Escrow Agreements in substantially the forms on file with the Secretary of the Authority and presented to the Board at this meeting. Any one of the Authorized Officers is hereby authorized and directed, for and in the name and on behalf of the Authority, to execute and deliver the Escrow Agreements, with such insertions and changes as may be approved by the 46408897.2 2 Public Financing Authority Resolution No. PFA- 2014 -001 Authorized Officer executing the same, subject to the provisions of this Resolution, such approval to be conclusively evidenced by such execution and delivery. SECTION 6. Any one of the Authorized Officers is hereby authorized and directed, for and in the name and on behalf of the Authority, to evaluate and select one or more municipal bond insurers for all or any portion of the Bonds and to execute and deliver such contracts and agreements with such bond insurers as may be approved by the Authorized Officer executing the same, subject to the provisions of this Resolution, such approval to be conclusively evidenced by such execution and delivery. SECTION 7. The Authorized Officers, the other officers and employees of the Authority, the members of the Authority's Board of Directors, Bond Counsel, Authority's Counsel and the other consultants to and agents of the Authority, are each hereby authorized and directed to do all things and take all actions necessary or desirable to effectuate the transactions contemplated by this Resolution, and to execute such other assignments, agreements, certificates, receipts, endorsements, orders, opinions and other documents in connection with such transactions, including, without limitation, closing documents in connection with the issuance of the Bonds, and all actions heretofore taken by the officers, employees and agents of the Authority in connection with the issuance of the Bonds are hereby ratified, approved and confirmed in every respect. SECTION 8. This Resolution shall take effect from and after the date of its passage and adoption. PASSED, APPROVED AND ADOPTED on this 24th day of June, 2014. Daryl ickman, Chairperson APPROVED AS TO FORM "b-a7r6ara Zeid Lei old, Counsel to the Authority 46408897.2 3 STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF LAKE ELSINORE ) I, Virginia J. Bloom, City Clerk of the City of Lake Elsinore, California, hereby certify that PFA Resolution No. 2014 -001 was adopted by the Public Financing Authority of the City of Lake Elsinore, California, at a regular meeting held on the 24'" day of June 2014, and that the same was adopted by the following vote: AYES: Agency Member Manos, Agency Member Magee, Agency Member Johnson, Vice Chair Tisdale, and Chairman Hickman NOES: None ABSENT: None ABSTAIN: None 1 Virginia J( IoorYi, Authority Clerk